joining me now senior media and internet analyst laura martin.es in the last month or so have gone positive on this stock. a lot of people thinking maybe, maybe that the worst is over. maybe the coast is clear. but you've got some reasons, just a few, why maybe they should hold their horses for a moment. >> i do. i think the common wisdom in order to upgrade means that it'll continue to trade on subscribers and that this ad-driven tier, which is half the price of the one in america right now is going to drive subgrowth, but we're very worried about can bill ballable -- canablization. >> charles: i hear people talking about different levels of solution and getting folks to sherpas words and for me it's tedious and like a treasure you want i don't want and going through all these things and i kind of get lucky when i find a movie i want to watch. i don't like the service personally. are there any complaints about the service itself? it's hard to find a movie. >> well, i agree, and i think netflix really started by aggregating other people's, other

here to discuss it all, laura martin, senior internet and media analyst. good to have you with us let's talk netflix first the stock has been on a nice ride recently. though, off its highs, obviously. what do you make of netflix's numbers and what do you make of the fact that they say they're not going to guide in the future, as i understand it, on net subscriber ads what does that tell you? >> soit tells us, despite the fact that they're cracking down on password sharing and the fact that they should ad subs from their lower cost $7 a month tier, they don't think they're going to add net subs which surprises us they will focus on revenue and on the pnl, but we're very -- we're concerned about that because if the $19 tier downgrades to the $7 tier, you need to add two new subs to equal the loss in the monthly premium tier in the u.s. which is their highest area. >> go ahead. i'm sorry. >> i just want to say, they're arguing that only $10 subs will downgrade to the $7 tier but the studies from harris and samba, all show that 50 to 60% of netflix subs are sa

joining us, laura martin joins us i have to give you props because a lot of the calls you made earlier in the year, namely taking meta to underperform in july, really paid off this week. stock is down 40% since. has your view changed? >> no, it's gotten more negative, but at least i think the market is catching up with the fact that mark is the ceo here is very clear about what he's doing, and i appreciate his courage because he's basically telling you, look, we spent $10 billion on the metaverse last year, we're going to spend $20 in 2022 and more next year and our capx is going up, they reported negative growth in revenue. that's a courageous act. so he's telling the market, the market is catching up with what he's saying. and i think the only way we're now sort of different from the market that's caught up with us is that we're not sure there's a core business here we're not sure that if tiktok wins, that there actually is value in instagram or facebook certainly we're not sure about the metaverse spending, but that's where we might be a little more negative than the average wall st

i want to bring in needham and company senior internet analyst laura martin. it has been one hell of a run. is it over? >> yep for now it's over. these companies, they are run by men who control them absolutely and they cannot stop spending money. we've got cap-ex up. we've got operating costs up and their revenues, youtube revenue was down 2%. facebook total revenue was down 4%. they cannot stop spending money and their revenues are in decline or slightly growing. so right now these companies are earnings per share and returns on capital are plummeting. >> to that point, right, we're already seeing job losses in this country. most of them in silicon valley, software developers, marketing, mathematics, science research. they're starting to make some moves there. and so, i think about that, i hear what you're saying. the thing about meta of course, amazon, some of these others, should, why is there this much pushback on the notion that they're building things or trying to build things so they can dominate the future? i mean before those things were sort of rewa

laura martin of needham on tech check says we're not running a not for profit here.cale is not resulting in profitability. >> yeah. i think it's taking time if you look at how much they've invested over the past two years, an incredible amount of money they've put into their fulfillment network, aws, transportation network, and we're seeing those capital investments pull back. this year amazon is expected to decrease fulfillment and transportation capex by $10 billion, so it's allow itself to grow into this supply chain network that it obviously overbuilt the supply chain network in the past two years and is allowing itself to grow into this network. i think that bodes well for margins. it won't happen overnight, but a pretty significant margin of improvement in 2023 and even 2024 we're expecting operating margins to nearly double in 2023 compared to 2022 so, again, the story i think is going to be -- the narrative is shifting from the top line to the bottom line. that's a big catalyst for the stock next year. >> what about the top line do we have to be worried about

i have to hand it to laura martin today we admire zuckerberg's commitment to a vision in the face ofing odds willing to make big bets that may change the world for 2 billion consumers or create an epic fail. >> we don't know if they are making a mistake the classic mistake, we have this a wonderful technology. why don't you want it? you should want this we'll see. we have got even more after the break with microsoft's device chief talking demand, pricing, a whole lot more ahead of a big surface event. that's happening now happening today. "techcheck" is back after this hi, my name is tony cooper, and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medic

wonderful, wonderful, laura, is a reference to steve martin's great film "l.a. story" when he says he's falling in love. >> and here i thought it came to mind because you saw me in canary yellow. >> that's what inspired it. anyway, it was a cinematic theme. >> i like the trivia. i like the fun facts to start the show. that's awesome. >> next i'll work on a pop up video for it. >> very good. and you're awesome too, jake. >>> good evening, everyone, i'm laura coates in washington. >> and i'm allison camerota in new york and this is "cnn tonight." >> we're also here with our panelists across the political spectrum there's actually one team in washington with me. >> and the other team here in new york with me. basically we have so much work we need two studios. it doesn't fit in one. so let's start with all the developments heading up to the mid-terms. the big guns from barack obama to donald trump are about to hit the campaign trail, and we've also got new polling that tells us a lot about why people are choosing certain candidates and the kind of america that vote

laura. thank you, martin.ster warriors who are suspended from all competitions since august for unpaid taxes. the arm of the club that employs all players and staff was wound up at a hearing in the high courtand it means wound up at a hearing in the high court and it means all contracts are terminated and all debts remain unpaid and outstanding. as players will be free to leave, what is left of the club remains uncertain with the umbrella company still in administration. the worcester warriors player cameron yelled describes how he believes the club has been run. describes how he believes the club has been run-— has been run. couldn't describe it as anything _ has been run. couldn't describe it as anything else _ has been run. couldn't describe it as anything else a _ has been run. couldn't describe it as anything else a shambles. - has been run. couldn't describe it as anything else a shambles. the j has been run. couldn't describe it - as anything else a shambles. the way the owners have treated players, sta

martin. visibility is better. if you're about to take the kids out to school in the east bay, mostly cloudy, mid-50s but clearing up for this afternoon. laurajoining us as well. we'll be back with another local news update in half an hour. cotton candy. bubble gum. when tobacco companies sell candy flavored products, they know exactly what they're doing because four out of five kids who use tobacco start with a flavored product. and once they're hooked, they can be addicted for life. this election: we can stop big tobacco's dirty trick. voting yes on prop 31 will end the sale of candy flavored tobacco products. saving kids from nicotine addiction. vote yes on 31. ♪♪ ♪ ♪ >>> wow! wow. that's a big one move over, charlie brown that is a great pumpkin. weighing in at a whopping 2,560 pounds. >> my gosh. >> that gourd squashed the competition at an annual contest in california. look at that look how it rests because it can't stand up >> so actually it was a horticulture teacher from minnesota, that was his pumpkin, and he drove it. you can't check that in overhead 35 hours across the country. >> there you go. >> congratulations. >> yes, congrat